Tax Planning

Each person/family situation is different and it is important you seek advice that is specific to your situation. 

 

This is an ongoing process. Yes you can do it year by year, but it really comes down to making sure you use the right structure and that you get the right advice before you embark on your investment. The simple use of a Mortgage Offset account, instead of paying out a loan can result in significant tax saving in later years.

 

Making sure you maximise your deductible super contributions, pay memberships or subscriptions before the end of the financial year, if you require new equipment you may chose to bring forward the purchase utilising the asset write off rules.

 

Negative Gearing

In essence, is spending a dollar to save 45cents (or 30 if you are in a lower tax bracket). The idea is that your investment makes a loss, which results in a tax deduction for you and therefore creates a tax refund. Assuming you are on the top tax bracket, then for every dollar you lose, you will get a tax refund of 45 cents, effectively having your loss. Ideally this loss, is offset by the growth in value of the investments.